Agenda Eligibility –TRS –PERS –Scenarios Retiree Return to Work Forms Open Discussion.
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Agenda
Eligibility– TRS– PERS– Scenarios
Retiree Return to Work
Forms
Open Discussion
Eligibility
Eligibility
Membership Eligibility
Three
steps
to successful
eligibility management
Documentation
Determination
Periodic Review
Determination
Determination
Determination
You are responsible for the initial determination of an employee’s eligibility for membership
Retirement Status Form
Position Eligibility Worksheet
New Hire Pyramid
Eligibility
TRS
TRS Plan 1
Member– Person who has established membership and
has not withdrawn their contributions
Former Member– Person who has established membership and
has withdrawn their contributions
887-55-1111
887551111
441-22-3333
441223333
TRS Plan 1 Members
Report all TRS Plan 1 members regardless of position on the TRS transmittal from the first day of employment
TRS Plan 1 Former Members
Hired into a faculty position
A former member of TRS Plan 1 is treated as if they have never been a member of TRS
If the individual is eligible for HERP coverage they must join HERP immediately
Less than full-time contracts that are not eligible for HERP provide quarterly substitute report– RCW 41.32.013
TRS Plan 1 Former Members
Hired into a non-teaching position
Eligible Position– Report in HERP if appropriate
Or– Report in PERS until TRS Plan 1 membership is reestablished
(payback withdrawn TRS Plan 1 member contributions)
Ineligible Position– Report in HERP if appropriate– Do not report on transmittal until TRS Plan 1 membership is
reestablished
TRS Plans 2 and 3
A position is eligible if it normally requires five or more months of at least 70 hours of earnable compensation during September through August of the following year
Eligible Position– Report in appropriate System/Plan
Ineligible Position– Provide a quarterly report if they are working in an ineligible
position and not contributing to HERP– RCW 41.32.013
Eligibility
PERS
PERS
The initial determination of eligibility must be based on the position– Job share
Employees in an ineligible position cannot be members– Employees working in more than one ineligible position
may be eligible for membership
Eligibility can also be determined by the person
PERS
A position is eligible if it normally requires at least five months each year in which regular compensation is earned for at least 70 hours per month
New Position– Meets eligibility definition for two consecutive years
Existing Position– Meets eligibility definition during at least one year in any two
year period
PERS
Exempt from Membership
Independent Contractors– WAC 415.02.110– Contractor Questionnaire
Current members of Higher Education Retirement Plans (HERP)
Student and spouse of student– WAC 415-108-520
PERS Options
New Member Plan Choice
Transfer Option
Membership Chosen
New Member Plan Choice
New to PERS on or after March 1, 2002
Member has up to 90 days to make their plan choice between PERS Plan 2 and PERS Plan 3
Member defaults to PERS Plan 3 at the end of 90 days– WSIB– Rate option A, 5%
90 Day Report
San Juan Island SD
New Member Plan Choice
Report member in PERS Plan 2 on the first transmittal– Unless member chooses a plan before payroll cutoff
Begin date Choice date
Submit plan choice record via the transmittal after the Member Information Form (MIF) is received– Plan choice date (the date member signed the form)– Plan choice code
2C 3C 3D
535112222
KELLY535-11-2222
Transfer Option
Established PERS Plan 2 membership prior to March 1, 2002
Option to transfer to PERS Plan 3 in January
Report in PERS Plan 2
Plan transfer code– 3X
Membership Chosen
Member chose PERS Plan 2– Report member in PERS Plan 2– May never transfer to PERS Plan 3
123456789
123-45-6789 CASEY
OR
Member chose PERS Plan 3
Membership Chosen
Member defaulted into PERS Plan 3– Report member in PERS Plan 3– 90 days to choose investment program and contribution rate– Default
WSIB Rate option A, 5%
– Report only employer contributions until MIF is received or member defaults
Member contributions from date of choice/default forward
544113232
544-11-3232 JEREMY
Plan 3 Lost Earnings
If employer misses a deduction, deduct double on the next reporting period
Potential for lost earnings– Be consistent with application– Employer or member can notify DRS
PERS Plans 1 and 2TRS Plan 2
A member of PERS Plans 1, 2 or TRS Plan 2 who have withdrawn their contributions are treated as if they have never been a member of PERS or TRS
If the individual is eligible for HERP coverage they must join HERP immediately
PERS and TRS Plans 3
A member of Plan 3 who has withdrawn their contributions is still considered a member of PERS or TRS– Plan 3 withdrawn members can still have rights to a Defined
Benefit– WAC 131-16-031
If the individual is eligible for HERP coverage and working in an eligible position (PERS/TRS) give them a choice– WAC 131-16-031– “Page 9”
Documentation
Documentation
Determination
Position Management
Determine what positions you have
Assign each position a unique identifier – Numbering systems
Track each position– Determine the position’s eligibility by reviewing the number
of hours worked under each unique identifier
Documentation
All determinations of position eligibility should be documented– Numbering system– Position Eligibility Worksheet
Determinations must be kept and maintained in a separate file for 60 years– Per established archival retention schedule– Payroll register and timesheets
Periodic Review
Periodic Review
Documentation
Determination
Periodic Review
Positions Change Review all
less than full time positions
on a regular basis
At least yearly
Eligibility
Periodic Review
Documentation
Determination
SUCCESS
Eligibility
Retirees
Retirees
Definition~
OR
A person receiving a lifetime, defined benefit
Lump sum benefit
A person
becomes a
retiree on their
accrual date
Retirees
Accrual Date~
And
Accrual date is set when a member is eligible to retire
Member must complete the following steps:– File an application with DRS– Terminate employment with all public employers– Sever all contractual agreements for future
employment
313-11-2222
313112222
RetireesMost retirees are limited in the amount of hours they can work and still received their pension from DRS– Employers are responsible for correct reporting of compensation and hours– Retirement Status Form
Verify status via MRV RCW 41.50.139
Retirees
LEOFF Plan 2 Retirees may choose between two options1. Become an active member and temporarily suspend their LEOFF retirement benefit
2. Remain retired and continue to receive their LEOFF retirement benefit
Must complete the LEOFF Plan 2 Retiree Re-employment Form
Retirees
All retirees must be reported to DRS
Report under Plan 0
Report in system applicable to their current position
Report appropriate begin and end dates
Report appropriate type code
Eligibility rules are the same for all positions
Retirees
Contributing to HERP– 97 for TRS– 99 for PERS– Need email to set flag if contributing to HERP
98 Eligible Position– Compensation and hours required
99 Ineligible Position– Compensation and hours are optional
Retirees
Limits
From July 22, 2007 forward can work up to 1,500 hours per fiscal year without any reduction in benefit– Must have at least a 45 day break in service – Employer must document a justifiable need to hire the
retiree “pursuant to a writing policy”– Must be hired through the employer’s established
process – Employer keeps a record of the hiring process and
decisions made for access by DRS when necessary
TRS Plan 1 retirees
Limits
Prior to August 01, 2003 can work up to 1,500 hours per calendar year without any reduction in benefit– Must have at least a 30 day break in service – Employer must document a justifiable need to hire
the retiree “pursuant to a writing policy”
From August 01, 2003 forward can work up to 867 hours per calendar year without any reduction in benefit
PERS Plan 1 retirees
Limits
TRS and PERS Plan 1 retirees have a lifetime limit of 1,900
Employer must document a justifiable need to hire the retiree “pursuant to a written policy”
Must be hired through the employer’s established process with approval by your highest authority
Employer must keep a record of the hiring process and decisions made for access by DRS when necessary
PERS08/01/03
90 day waiting period
TRS07/22/07
45 day waiting period
Limits
Can work up to 867 hours per calendar year without any reduction in benefit– Must have at least a 30 day break in service
All other Retirees
RetireesCalculations for benefit limits are based on the hours reported with type code 98 – Report B codes for months with no compensation and hours
Employer contributions are due on retirees who exceed 867 hours– Invoice will be sent the first of the following month back to the first hour of employment
RetireesHours associated with the following types of compensation are counted against the annual limit– Actual hours worked– Vacation/sick leave used– Paid Holiday
Vacation and personal leave cash outs do not count against the annual limit
Retirees
*Must have justifiable need, use the established hiring process, and keep all records.
TRS 1
2 and 3 N/A 30 Days 867 Yearly
< 07/22/07
> 07/22/07
30 days 1500 Yearly
1500 Yearly*
1900 Life45 days
PERS 1 < 08/01/03 1 Month1500 Yearly
1900 Life
2 or 3
> 07/31/03
N/A
30 Days
30 Days
90 Days
867 Yearly
867 Yearly
1500 Yearly*
1900 Life
Plan Retire Date Wait Period Hour Limit System
Eligibility
Scenarios
Scenario A
The Department of Health hires the following person into a half-time eligible position in the Licensing and Certification Section.
535112222
535-11-2222
Clallam County
Scenario A
Report system/plan?
PERS Plan 2
Scenario B
The Department of Revenue hires the following person into an eligible position in the Property Tax Department.
555-11-9999
555-11-9999
Revenue Dept of
Scenario B
Report system/plan?
PERS Plan 3
Scenario C
The Department of Licensing hires the following person into an eligible position for the Information Services Department.
565-55-7878
565-55-7878
Licensing Dept of
Scenario C
Report system/plan?Optional
LEOFF Plan 2 retirees must choose between two options
Become a member of PERS and temporarily suspend their LEOFF retirement benefit
Remain retired and continue to receive their LEOFF retirement
Must complete the LEOFF Plan 2 Retiree Re-employment Form
Scenario D
DSHS hires the following person into an eligible position in the Budget Department.
Scenarios
565-55-7878
565-55-7878
Scenario D
Report system/plan?
TRS Plan 1
Scenario E
The State Parks and Recreation Commission hires the following person into an eligible position to work as a Park Aide.
Scenarios
536-56-5555
5555
Parks & Recreation Commission
Scenario E
Report system/plan?
New Member Plan Choice
PERS Plan 2
Eligibility
Forms
Retirement Status
Employers must elicit information from all new employees (RCW 41.50.139)
Employer keeps this form
Member Information
New to PERS
Plan 2 transferring to Plan 3
Plan 3 returning to eligible employment choosing a new rate
Member signs and returns form to employer within 90 days of begin date
Employer mails original form to DRS only if Section 2 is required
Beneficiary Designation
Used to document beneficiary information in case of death
Separate $150,000 death benefit option
Send form to DRS
Plan 3 Change of Investment Program
Used to document member’s change of investment program
Member signs and returns form to employer
Employer keeps this form
LEOFF 2 Retiree Re-employment
Notification of Death
Used to notify DRS if a member, beneficiary or retiree has passed away
Employer mails original form to DRS
Thank You
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